Amongst the proposals put forward in the Queen’s Speech at the opening of Parliament were a couple of key measures with ramifications for the property sector of the UK Economy. Namely the green light for the first phase of the HS2 high speed rail link between London and Manchester/West Midlands and the new Government’s strategy to support home ownership for first time buyers.

HS2

The Government will enact the existing bill (High Speed Rail (London – West Midlands) Bill) by the end of 2016, in order to proceed with the development of phase one of the HS2 project. Central to the delivery of the project are:

• The grant of deemed planning permission to proceed with the construction of HS2;
• The right to use compulsory purchase powers to acquire any land required for the construction of HS2;
• Additional rights for the temporary occupation of land during the development phase;
• Governmental powers to re-route roadways and waterways and require statutory undertakers such as power and water suppliers to re-route existing infrastructure where necessary;

Construction is set to begin on HS2 in 2017, with a projected final delivery date of 2026.

Housing

The Housing Bill proposed during the last Parliament (and the subsequent consultation period which closed in February of this year) seeks to allay what is widely regarded as a housing crisis in the UK.  2 key factors driving this crisis are the dearth of supply of affordable housing (due in part to the convoluted planning regime) and the barriers for first time buyers in getting onto the property ladder.

The twin aims of the Housing Bill are to increase housing supply, whilst at the same time giving better access to home ownership for first time buyers, pursuant to which the Housing Bill includes proposals to introduce the necessary statutory framework to:

• Identify and ‘free-up’ existing brownfield sites for development, including the introduction of a statutory register of brownfield sites with a target of 90% of such sites being subject to local development orders by 2020;
• To simplify and streamline local planning systems in order to support communities seeking to deliver local housing effectively within their area;

This will enable house builders to take forward residential developments on previously underused brownfield sites. It will also remove costs barriers, such as section 106 contributions for affordable housing and the community infrastructure levy.  In return developers will be required to support the ‘starter home initiative’ by offering newly-built houses to first time buyers (under the age of 40) at a discounted price (20% less than market value).

Other initiatives in the housing sector include the extension of the right to buy discounts to tenants in housing association residences to enable them to acquire their property.  Support will also be offered to those who wish to build their own homes, with local planning authorities assisting in the identification of suitable plots of land.